AeroVironment (NASDAQ:AVAV) Trading 5% Higher – Still a Buy?

AeroVironment, Inc. (NASDAQ:AVAV)’s stock price shot up 5% during mid-day trading on Tuesday . The stock traded as high as $222.66 and last traded at $222.51. 1,701,724 shares changed hands during mid-day trading, a decline of 14% from the average session volume of 1,982,440 shares. The stock had previously closed at $211.88.

Key AeroVironment News

Here are the key news stories impacting AeroVironment this week:

• Positive Sentiment: Completed acquisition / capability expansion — AVAV closed its acquisition of Empirical Systems Aerospace (ESAero), adding UAS/AAM engineering, AS9100 manufacturing and hybrid/electric propulsion capabilities that support its defense growth strategy. This is a strategic revenue/technology push that can bolster long‑term growth prospects. Read More.
• Neutral Sentiment: Analyst stance: consensus remains constructive — recent data show a “Moderate Buy” consensus and continued analyst coverage supporting the growth story, which limits downside if execution stays on track. Read More.
• Neutral Sentiment: Investor presentation / investor communications — AVAV presented at the JPMorgan Industrials Conference (transcript available). Presentations can help clarify strategy and outlook but typically take time to move fundamentals. Read More.
• Neutral Sentiment: Insider selling — small sales disclosed by the CAO and a director (200 and 250 shares). These are modest reductions from insiders who still hold sizable positions; investors often view routine sales as neutral but monitor for patterns. Read More.
• Negative Sentiment: Investor investigations / litigation risk — Pomerantz LLP (and other firms) launched inquiries into AVAV, creating headline risk and potential legal exposure that tends to amplify volatility and push shares down. Read More.
• Negative Sentiment: Negative media/analyst tone and target cuts — several media pieces highlighted AVAV as a risky small‑cap/defense growth story, and at least one firm trimmed its price target (BTIG cut its target while keeping Buy). Negative headlines and lower targets weigh on near‑term sentiment. Read More. • Read More. • Read More.
• Negative Sentiment: Deal scrutiny / margin questions — coverage noting the ESAero deal “tests growth ambitions against mounting losses” raises investor concern about integration costs and near‑term margins. Read More.

Wall Street Analyst Weigh In

AVAV has been the topic of a number of recent research reports. Piper Sandler decreased their price objective on AeroVironment from $391.00 to $290.00 and set an “overweight” rating on the stock in a report on Tuesday, March 3rd. Royal Bank Of Canada dropped their target price on AeroVironment from $325.00 to $250.00 and set an “outperform” rating for the company in a report on Wednesday, March 11th. Stifel Nicolaus decreased their price target on AeroVironment from $389.00 to $315.00 and set a “buy” rating on the stock in a research note on Wednesday, March 11th. Weiss Ratings cut AeroVironment from a “hold (c-)” rating to a “sell (d)” rating in a research report on Monday, February 9th. Finally, BTIG Research dropped their price objective on AeroVironment from $415.00 to $330.00 and set a “buy” rating for the company in a research note on Thursday, March 12th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, one has issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, AeroVironment has a consensus rating of “Moderate Buy” and an average price target of $318.78.

AeroVironment Stock Down 2.1%

The company has a market cap of $10.55 billion, a P/E ratio of -48.70, a PEG ratio of 3.87 and a beta of 1.26. The company has a debt-to-equity ratio of 0.17, a current ratio of 5.51 and a quick ratio of 4.54. The business’s 50 day moving average price is $275.34 and its 200-day moving average price is $291.59.

AeroVironment (NASDAQ:AVAV) last released its quarterly earnings results on Tuesday, March 10th. The aerospace company reported $0.64 EPS for the quarter, missing analysts’ consensus estimates of $0.68 by ($0.04). AeroVironment had a positive return on equity of 3.26% and a negative net margin of 13.93%.The business had revenue of $408.05 million for the quarter, compared to the consensus estimate of $487.94 million. During the same quarter last year, the company earned $0.30 earnings per share. The firm’s revenue was up 143.4% on a year-over-year basis. AeroVironment has set its FY 2026 guidance at 2.750-3.100 EPS. On average, analysts anticipate that AeroVironment, Inc. will post 3.38 earnings per share for the current fiscal year.

Insider Activity at AeroVironment

In related news, CAO Brian Charles Shackley sold 200 shares of the company’s stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $212.52, for a total transaction of $42,504.00. Following the transaction, the chief accounting officer owned 5,794 shares in the company, valued at $1,231,340.88. This represents a 3.34% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Kevin Patrick Mcdonnell sold 999 shares of the firm’s stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $367.60, for a total transaction of $367,232.40. Following the completion of the sale, the chief financial officer owned 17,301 shares of the company’s stock, valued at $6,359,847.60. The trade was a 5.46% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 4,924 shares of company stock valued at $1,486,038 over the last ninety days. 0.81% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of AVAV. N.E.W. Advisory Services LLC grew its holdings in AeroVironment by 60.0% during the third quarter. N.E.W. Advisory Services LLC now owns 80 shares of the aerospace company’s stock worth $25,000 after purchasing an additional 30 shares during the period. Rothschild Investment LLC increased its position in AeroVironment by 7.8% during the third quarter. Rothschild Investment LLC now owns 498 shares of the aerospace company’s stock worth $157,000 after buying an additional 36 shares during the last quarter. Legacy Bridge LLC raised its stake in AeroVironment by 1.0% in the fourth quarter. Legacy Bridge LLC now owns 4,046 shares of the aerospace company’s stock valued at $979,000 after buying an additional 39 shares during the period. NewEdge Wealth LLC lifted its position in shares of AeroVironment by 1.1% in the fourth quarter. NewEdge Wealth LLC now owns 3,709 shares of the aerospace company’s stock valued at $897,000 after buying an additional 39 shares during the last quarter. Finally, J.W. Cole Advisors Inc. lifted its position in shares of AeroVironment by 3.7% in the fourth quarter. J.W. Cole Advisors Inc. now owns 1,081 shares of the aerospace company’s stock valued at $261,000 after buying an additional 39 shares during the last quarter. Institutional investors own 86.38% of the company’s stock.

AeroVironment Company Profile

AeroVironment, Inc (NASDAQ:AVAV) is a technology company specializing in unmanned aerial systems (UAS), tactical missiles and precision loitering munitions, electric vehicle charging and scalable energy systems. Headquartered in Monrovia, California, the company develops solutions for defense, public safety and commercial markets. Their offerings include small UAS for intelligence, surveillance and reconnaissance, as well as advanced weapons systems designed to meet the needs of modern military operations.

The company’s unmanned aerial systems portfolio features platforms such as the Raven, Puma and Switchblade series, which are deployed by the U.S.